Fixed Income 'Great Repricing' Boosts Future Returns: JPM's Chang

The video discusses the long-term financial outlook, focusing on the great repricing and its impact on future returns. It highlights the potential for increased allocations to fixed income and international markets. The speaker advises caution in fixed income investments due to tight credit spreads and valuations, particularly in high yield and emerging market credits. The discussion also covers market preferences, emphasizing local markets in emerging economies.

What was the expected return from a 60/40 portfolio in 2020, and how has it changed for the next decade?

• 2.5% in 2020, now 5.5%

• 5% in 2020, now 7%

• 4% in 2020, now 6%

• 3.25% in 2020, now 6.7%

What is one potential outcome of the great repricing discussed in the video?

• Stability in equity markets

• Decrease in fixed income allocations

• Increase in international market investments

• Reduction in credit spreads

Why might investors be cautious about high-yield bonds currently?

• Tight valuations

• High inflation

• High default rates

• Low interest rates

Which market is preferred for emerging market investments according to the video?

• Domestic markets

• Developed markets

• International markets

• Local markets

What has happened to credit spreads compared to the equity market?

• They have widened significantly

• They have remained stable

• They have tightened faster

• They have decreased slightly